DENVER, Jan. 16 (UPI) -- The publisher of the Denver Post, The Detroit News, the Salt Lake Tribune and 51 other daily newspapers says it will declare bankruptcy.
Affiliated Media Inc., the holding company for the MediaNews Group of newspapers, based in Denver, said Friday it has reached a deal with its senior creditors to carry out a pre-packaged Chapter 11 bankruptcy as part of a financial restructuring, the News reported.
The company said in a statement that the reorganization won't affect newspaper operations and is being done to reduce Affiliated Media's debt by about $765 million to $165 million through a debt-for-equity swap.
"In contrast with most filings, where creditors may oppose the proposed plan of reorganization, a prepackaged filing means that affected creditors have already seen and accepted the plan prior to the time it is filed, so that it can proceed with little debate or negotiation, and can swiftly win approval from the court," the statement said.
"This step will put us on a positive financial path and won't have any impact in Detroit or at any of the other MediaNews Group newspapers," Jonathan Wolman, editor and publisher of The Detroit News, said.